This from R&R today: Clear Channel is aiming to reduce the cost of its massive debt, freeing the 800-radio station operation from $1.33 billion in bonds that are paying holders as much as 11.74% through 2016.

In a statement to the SEC filed late Monday (April 20), the San Antonio-based company also said it seeks to exchange "any and all" of its $980 million in 10.75% senior notes due in 2016.

The company-set deadline for the exchanges is at midnight on May 18. The company became the poster child for debt-ridden radio companies last July 25 when a consortium lead by Bain Capital and Thomas H. Lee Partners acquired the mega media operation in a protracted $17.9 billion leveraged buyout. Clear Channel currently has debt totaling $21 billion. The company told the SEC it is eyeing the possibility of hiring an advisor to review its restructuring possibilities. In a report to the SEC filed Monday, parent company CC Media Holdings Inc., said preliminary first quarter revenue was down 23% to $1.2 billion from $1.56 billion last year. The dramatic drop could pose trouble for the company in getting refinancing at a discounted rate.

Appearing on CNBC last week, Scott Sperling, co-president of THL, said, "We do not have an expectation that we have an imminent blow-up at Clear Channel." Sperling noted that Clear Channel's management team and pointed to the operation's "unmatched asset base."

Author: Deane_johnson
Wednesday, April 22, 2009 - 12:05 pm

Interesting article, thanks for posting it. Somehow I have trouble having any sympathy for Clear Channel.

Author: Roger
Wednesday, April 22, 2009 - 2:14 pm

Revenue= 5% of debt in one quarter 20% of debt for the year That ain't so bad. If they are worried about it, the May's family might try out that dollar a year thing until results are more to their liking. Limbaugh up for a pay cut to keep the company going? Auto workers are giving up to keep the companies afloat. C'mon El Rushbo, offer to do your part.

Hope the Bain Lee group learned a lesson. Imagine where things would be if they could have backed out. And those poor banks that were forced to go through with the financing.....

Capital one just offered to "EXCHANGE" my 3.99 percent credit card for a new 14.99 percent card. (nope never late always pay more than min when there is a balance.) Agreed to opt out so the low rate is locked till payoff.

Maybe Bond holders can offer up a new rate to CC..... Say...18.99 percent? Adjustable to 29.99 percent should there be a late payment or default.

Just say no and see what happens..... The bank will take YOUR house or car... Feel free to offer CC the op for a short sale to get them out of trouble.

LESSON: 800 station chain in trouble might hurt a little. Wouldn't be such a hit if the limit was 7/7.. Maybe wouldn't be in trouble under 7/7 either....

What, no rainy day fund?

Pay your contractual obligations, or sell some assets. You promised. It was those promises that brought the investment money in. If you were overly optimistic on revenue projections, that's on you. If you KNEW you were painting a generous picture to secure financing, that's on you too.

Did you see the horse before you bought it?

Private or not the overly inflated stock price (32 something) in the last week or so probably belongs down with the other radio company prices......Value your shares closer to actual value of around a buck or two and see how those restructure plans will fly.

JUNK BONDS-S-S-S-S! who wants to buy JUNK BONDS-S-S-S-S!

It's a TOTAL LIQUIDATION COMPANY WIDE SELL OUT!

NOW AT ALL 800 STATIONS. OFFICE EQUIPMENT STARTING AT FIVE DOLLARS. THAT'S RIGHT FIVE DOLLARS!!!!

Author: Vitalogy
Wednesday, April 22, 2009 - 2:58 pm

Massive debt and falling revenues means Chapter 11 BK coming soon!

Author: Stevethedj
Wednesday, April 22, 2009 - 3:26 pm

It couldn't happen to nicer people. LOL.

Author: Trixter
Wednesday, April 22, 2009 - 5:12 pm

Or a nicer company....

Author: Missing_kskd
Wednesday, April 22, 2009 - 6:32 pm

Might I recommend a premium LinkedIn subscription?

Would be good to hook up with anyone and everyone, so when it hits, you've got a shot.